A business exporting goods from Poland or via the UK to third countries must take account of obligations arising from Russia sanctions — not only for direct exports to Russia, but also where there is a risk of circumvention through third countries.
Contents
In brief
- Since 20 March 2024, EU exporters selling certain goods and technology to third countries must contractually oblige the buyer not to re-export them to Russia — the so-called “no-Russia” clause under Article 12g of Council Regulation (EU) 833/2014.
- The obligation covers specific categories of goods listed in Annexes XI, XX, XXXV and XL to the Regulation (aviation goods, jet fuel, firearms — including those in Annex I to Regulation 258/2012 — and “common high priority items”).
- The obligation does not apply to contracts with counterparties in the partner countries listed in Annex VIII (the United States, Japan, the United Kingdom, South Korea, Australia, Canada, New Zealand, Norway, Switzerland, Liechtenstein and Iceland).
- The UK has separate sanctions under The Russia (Sanctions) (EU Exit) Regulations 2019, enforced by OTSI (trade sanctions, since October 2024) and OFSI (financial sanctions), with growing emphasis on prosecuting sanctions circumvention through third countries.
EU: the “no-Russia” clause under Article 12g of Regulation 833/2014
As part of the 12th package of sanctions against Russia (December 2023), the European Union added Article 12g to Council Regulation (EU) No 833/2014, requiring exporters to protect themselves contractually against re-export of goods to Russia.
What the obligation involves
Businesses concluding contracts from 20 March 2024 for the sale, supply, transfer or export of specified goods and technology to third countries must include a clause in the contract prohibiting re-export to Russia and use of the goods in Russia. The parties must also agree appropriate remedies in case the counterparty breaches the clause.
Which goods are covered
The obligation applies only to goods and technology listed in Annexes XI (aviation), XX (jet fuel) and XXXV (firearms) to Regulation 833/2014, to firearms listed in Annex I to Regulation (EU) No 258/2012, and to the “common high priority items” in Annex XL — selected electronic and industrial components used by Russia, not the whole dual-use goods list.
Exceptions
The obligation does not apply to contracts with counterparties in the partner countries listed in Annex VIII to the Regulation — as indicated by the European Commission (from 24 June 2024) these are: the United States, Japan, the United Kingdom, South Korea, Australia, Canada, New Zealand, Norway, Switzerland, Liechtenstein and Iceland. From 24 June 2024 (14th package, Regulation 2024/1745) the obligation also does not apply to public contracts with a public authority of a third country or an international organisation — however, such contracts must be reported to the competent national authority. Contracts concluded before 19 December 2023 benefited from a transitional period until 19 December 2024; when performing them from 1 January 2025 the clause is already required.
Remedies and monitoring the counterparty
The clause must provide for adequate remedies — according to the European Commission these may include, for example, suspension, termination or cancellation of the contract, or contractual penalties. Including the clause is only the first step, however: the Commission stresses that, independently of Article 12g, businesses should have robust due diligence procedures to prevent circumvention of sanctions, and an exporter should not sell goods covered by Article 12g to a counterparty that does not agree to the clause. In practice, businesses exporting goods subject to the obligation should have a documented procedure for assessing re-export risk, not just a ready-made contract clause.
The absence of a no-Russia clause (with adequate remedies) in a contract subject to the obligation is a breach of Article 12g by the exporter — regardless of whether re-export to Russia actually took place.
United Kingdom: The Russia (Sanctions) (EU Exit) Regulations 2019
The United Kingdom operates its own Russia sanctions regime, independent of the EU, based on the Sanctions and Anti-Money Laundering Act 2018 and the secondary legislation The Russia (Sanctions) (EU Exit) Regulations 2019. The regime includes, among other things, export bans on certain goods and technology, restrictions on services (including brokering services and technical assistance) provided to Russia-connected parties, and asset freezes on sanctioned persons and entities.
Risk of circumvention through third countries
Sanctioned goods can reach Russia through complex supply chains in third countries — so when selling to countries regarded as circumvention routes, verifying the end user is particularly important.
Enforcement: OTSI and OFSI
Trade sanctions (goods, technology, services) have been enforced since October 2024 by the Office of Trade Sanctions Implementation (OTSI), part of the Department for Business and Trade, and financial sanctions by the Office of Financial Sanctions Implementation (OFSI). OFSI actively pursues circumvention: on 17 June 2026 it imposed a penalty of over £1 million on Sabre Global Technologies Limited — OFSI’s first-ever penalty for circumvention — for making funds and economic resources available to a sanctioned Russian airline over seven months.
Penalties for breaching sanctions in the UK
Breaching UK sanctions rules can result in civil penalties imposed by OFSI (financial, running into millions of pounds in more serious cases) as well as criminal liability — offences under Part 5 (Trade) of the 2019/855 Regulations carry up to 10 years’ imprisonment, and under Part 3 (Finance) up to 7 years (reg. 80). OFSI regularly publishes a list of penalties imposed and reports on enforcement trends, which helps businesses assess which sectors and types of transaction are currently the authority’s focus.
Liability for breaching sanctions can arise not only from direct exports to Russia, but also from a failure to carry out due diligence on a third-country counterparty who — as the business could have suspected — would pass the goods on to Russia.
What an exporter trading between the UK and the EU should do
- Check whether the exported goods appear on the lists of goods subject to the no-Russia clause obligation (Annexes XI, XX, XXXV and XL to Regulation 833/2014) or on UK sanctions lists.
- Include in your standard terms of sale a clause prohibiting re-export to Russia where required, together with a mechanism for contractual remedies against the counterparty.
- Verify the end user and country of destination of the goods (know-your-customer / end-user checks) — particularly when selling to countries bordering Russia or regarded as circumvention routes.
- Track updates to sanctions lists — sanctionsmap.eu for the EU (a supporting tool — the binding text is the regulations on EUR-Lex) and the UK Sanctions List, which from 28 January 2026 is the sole source of UK designations — lists and goods scopes change with each new sanctions package.
- If in doubt about a specific transaction, consult a legal adviser specialising in sanctions law — a wrong assessment can result in administrative and, in some cases, criminal liability.
Poland: national sanctions oversight
In Poland, enforcement of EU sanctions is handled, among others, by the National Revenue Administration (at the customs clearance and goods control stage) and the General Inspector of Financial Information (for asset freezes and financial transactions). A customs declaration for sanctioned goods, or goods destined for an entity on a sanctions list, may be stopped already at the clearance stage, and a breach of sanctions rules — like other breaches of customs obligations — may give rise to liability under the Fiscal Penal Code or separate sanctions legislation, independently of EU-level liability.
Documenting compliance — what to have ready
Businesses trading between the UK and the EU, especially in higher-risk sectors (electronics, industrial components, dual-use goods, chemicals), should maintain a documented process for screening counterparties and goods for sanctions: a current list of goods subject to the no-Russia clause obligation, a template contract clause with a mechanism for remedies for breach, an end-user verification procedure (including checks on the EU sanctions map at sanctionsmap.eu and the UK Sanctions List), and a record of decisions taken in doubtful cases together with the reasoning. Such documentation matters not only preventively but also as evidence of due diligence in the event of an inspection or investigation.
Sources
- FAQ: “No re-export to Russia” clause — European Commission
- Council Regulation (EU) No 833/2014 — EUR-Lex
- The Russia (Sanctions) (EU Exit) Regulations 2019 — legislation.gov.uk
- EU Sanctions Map
- Russia (Sanctions) (EU Exit) Regulations 2019, reg. 80 — legislation.gov.uk
- Office of Trade Sanctions Implementation (OTSI) — GOV.UK
- OFSI — penalty for Sabre Global Technologies (17.06.2026) — GOV.UK
- Closure of the OFSI Consolidated List, UK Sanctions List from 28.01.2026 — GOV.UK
This article is for information only and does not constitute legal advice. In a disputed matter, consult a tax adviser or solicitor.
If you need support clearing goods that carry sanctions risk, contact us.
Frequently asked questions
Since when has the no-Russia clause applied in the EU?
Contracts concluded from 19 December 2023 must contain the clause from 20 March 2024. Earlier contracts benefited from a transitional period until 19 December 2024 (or until the contract expired, if sooner) — when performing them from 1 January 2025 the clause is also required.
Does the no-Russia clause apply to every export from the EU?
No — only to goods and technology in Annexes XI, XX, XXXV and XL to Regulation 833/2014 (and firearms in Annex I to Regulation 258/2012), and only in contracts with non-EU counterparties, except partner countries in Annex VIII.
Does exporting to the United Kingdom require a no-Russia clause?
No — the United Kingdom is listed as a partner country in Annex VIII to Regulation 833/2014, so the clause obligation does not apply to contracts with UK counterparties. This does not exempt you from complying with other sanctions.
Is a business liable if its third-country counterparty passes the goods on to Russia?
The absence of a required clause is in itself a breach of Article 12g. Separately, the European Commission recommends robust due diligence procedures on counterparties, and EU and UK authorities (OFSI, OTSI) are increasingly pursuing circumvention of sanctions through third countries — discuss the details of a specific transaction with a lawyer.
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